Introduction

The Albanese Government delivered its first full budget last night, and while the government has delivered the first budget surplus in 15 years, it has also missed an opportunity to tackle serious reform.

As I told media, I believe the government’s changes to the Petroleum Resource Rent Tax (PRRT) are too weak. The timid changes will net the budget only $2.4 billion over the next four years, meaning Australians will not receive a fair share of tax for the offshore gas resources which we all own. The budget is also overly reliant on personal income tax, and the government must address this if we are to fund the policies and programs that can make Australia a fair and prosperous society.

After analysing all the budget papers, this newsletter will summarise what the budget means for you and what the ‘hits’ and ‘misses’ are. Remember, if you have any questions about the Budget, or would like to raise a particular issue with me and my team, you can email me at [email protected].

What does the Budget mean for…

Climate change and renewable energy

“The budget was a missed opportunity to supercharge our ability to become a renewable energy superpower. The $2 billion investment in Australia’s hydrogen energy industry is welcome, as are the modest investments to help electrify small businesses and social housing. However the government’s investment in green energy is a drop in the ocean when compared to the nearly $750 billion in new spending and tax breaks under the US Inflation Reduction Act. The current level of investment in industry incentives and subsidies here in Australia may not be enough to stop some of our emerging businesses and industries heading offshore.”

Cost of living

“The government has had to walk a fine line in delivering immediate cost of living relief and ensuring this does not further fuel inflation. I believe the government has come close to achieving this, and the $500 subsidies on energy bills will be welcomed by households around the country. The policies to make childcare and medicines cheaper are also good moves. However the decision to increase jobseeker payments by just $40 a fortnight, or $2.86 a day, will not be enough to lift some of our most vulnerable out of poverty.”

Small Business

“This is a good budget for small businesses who have been doing it tough. There are new grants and tax breaks to help small businesses invest in electrifying heating and cooling systems, installing batteries, and upgrading to high-efficiency electrical goods. This will help small businesses counter the rising cost of doing business. While the $20,000 instant asset write off scheme will help businesses with a turnover of under $10 million to invest in new equipment and assets.”

Health and mental health

“The government has unveiled a record $5.7 billion investment in healthcare. I commend the Minister for Health for listening to the sector and implementing measures that will mean 11.6 million Australians are less likely to face out of pocket expenses to see their GP. The tripling of bulk-billing incentives means children under 16, pensioners and those with Commonwealth cards may no longer face out of pocket expenses. I also welcome the funding to establish an Australian Centre for Disease Control which will significantly improve our capacity to manage national public health issues into the future. However the government has only provided $53.4 million in funding for preventative health measures and has not funded the National Obesity Strategy. With the health system stretched to its limits this is a serious missed opportunity. Mental health is also severely underfunded. $556.2 million over five years isn’t enough to tackle our nation’s mental health crisis.”

The Environment

“The lack of investment in our environment is a glaring omission. While there is money to create the legislative framework of the EPA to protect our environment in the future, there is little money to actually protect Australia’s threatened species and flora right now. It has been estimated that we need to invest over $1.5 billion per year to reverse Australia’s extinction crisis, so $341.2 million over five years is nowhere enough to halt the decline of our precious national wildlife.”

Aged care

“Our aged care system is in crisis, and aged care workers have been undervalued and underpaid for too long. So the government’s commitment to fund the 15% pay rise for aged care workers is immensely welcome. The increase in finding for an additional 9,500 home care packages for older Australians is desperately needed. However the government must do more to help fund in-home aged care into the future. We know more Australians would prefer to live in their own homes as they age, so the government must start to invest in the services that can help Australians live safe, healthy, and independent lives in their own homes as they age.”

Women

“The government should be commended for its investment in women’s safety. The $589.3 million in this budget comes on top of the $1.7 billion committed in October last year for The National Plan to End Violence against Women and Children 2022-2032. The government’s 15% pay rise for aged care workers will also help this female dominated workforce. However there is still a lack of action on closing the super gap and paying superannuation on paid parental leave, this should be urgently addressed.”

Integrity

“The new National Anti-Corruption Commission (NACC) will be up and running from 1 July and will mark a turning point in the battle to restore integrity and transparency to federal politics. In addition to the NACC, which was funded in the October budget to the tune of $270 million, the additional funding for the ANAO will help strengthen Australia’s integrity infrastructure. I will also continue my call for the government to back my ‘Ending Jobs for Mates Bill’ as for just $3 million per year, the government could help end the jobs for mates culture in federal politics.”

Indigenous Australians

“The budget includes significant investment in Indigenous Australians and the $1.9 billion in Closing the Gap funding is substantial and incredibly welcome. The programs aimed at reducing violence against Indigenous women and to tackle smoking and vaping rates in Indigenous communities are also welcome.”

Young people

“This is a budget that gives to young people on one hand and takes away with the other. The additional 300,000 fee-free TAFE, vocational education and training places is a great way to help young people get the skills they need to start their careers. However those with HECS and HELP debts will see an increase in their debts as there has been no pause in these being indexed to the current high inflation rates. The fact that young people on Jobseeker do not get the same increase as older jobseekers feels unfair. The lack of tax reform also means young people will face paying back a national debt of over $1 trillion after 2025-26.”

Older Australians

“The move to allow patients to purchase 60-day scripts will mean patients save up to $180 a year while the tripling of the bulk-billing incentives for GPs will also mean many older Australians will no longer face out of pocket expenses when they see their GP. With more older Australians wishing to remain in their own home as they age, it’s hugely important the government steps up investment in the in-home aged care system.”

Other hits